SELLERS GROSS MET

RECEIVABLES
SALES DISCOUNT 12/9 ACCOUNTS RECEIVABLE
-TRADE
no recorded
point of sale 12/10 ACCOUNTS RECEIVABLE

-CASH
recorded 12/19 CASH
terms SALES DISCOUNT
on account purchase
early payments
12/26 ACCOUNTS RECEIVABLE

LIST PRICE 120,000.00

TRADE DISCOUNT, 10% - 12,000.00 12/31 EXPIRED DISCOUNT FOR MEN'S WORL
108,000.00 DISCOUNT EXPIRES FOR TEEN'S KINGD
TRADE DISCOUNT, 5% - 5,400.00
INVOICE PRICE 102,600.00 SALES DISCOUNT

To record anticipated discount

RECORDING CASH DISCOUNT I/S SALES

-GROSS METHOD SALES DISCOUNT
1. To record anticipated discount AT THE END OF THE YEAR NET SALES
-NET METHOD
2. To record DISCOUNT opportunities lost (OTHER INCOME) B/S AR GROSS
-ALLOWANCE METHOD REAL ACCO ALLOWANCE FOR SALES DISCOUNT
3. To record DISCOUNT opportunities lost (OTHER INCOME) AR NET

1/1'NEXT Y ALLOWANCE FOR SALES DISCOUNT

1/5 CASH
*** SALES DISCOUNT

1/9 CASH
 GROSS METHOD

OUNTS RECEIVABLE 102,600.00 12/9

SALES 102,600.00

OUNTS RECEIVABLE 50,000.00 12/10

SALES 50,000.00

100,548.00 12/19
S DISCOUNT 2,052.00
ACCOUNTS RECEIVABLE 102,600.00

OUNTS RECEIVABLE 40,000.00 12/26

SALES 40,000.00

RED DISCOUNT FOR MEN'S WORLD 12/20/20 12/31

OUNT EXPIRES FOR TEEN'S KINGDOM 01/05/21

S DISCOUNT 800.00
ALLOWANCE FOR SALES DISCOUNT 800.00
cord anticipated discount

192,600.00 NET SALES

S DISCOUNT - 2,852.00 OTHER INCOME (SALES DISCOUNT FOR
189,748.00 SAME TOTAL REVENUE

90,000.00 AR GROSS
WANCE FOR SALES DISCOUNT - 800.00 ADJ AR FOR FORFEITED DISCOUNT
89,200.00 SAME AR NET

WANCE FOR SALES DISCOUNT 800.00

SALES DISCOUNT 800.00

39,200.00 1/5
S DISCOUNT 800.00
ACCOUNTS RECEIVABLE 40,000.00

50,000.00 1/9
ACCOUNTS RECEIVABLE 50,000.00
 NET METHOD

ACCOUNTS RECEIVABLE 100,548.00 12/9

SALES 100,548.00

ACCOUNTS RECEIVABLE 49,000.00

SALES 49,000.00 12/10

CASH 100,548.00
ACCOUNTS RECEIVABLE 100,548.00
12/19

ACCOUNTS RECEIVABLE 39,200.00

SALES 39,200.00
12/26
EXPIRED DISCOUNT FOR MEN'S WORLD 12/20
ACCOUNTS RECEIVABLE 1,000.00
SALES DISCOUNT LOST 1,000.00 12/31
To record discount lost

NET SALES 188,748.00 NET SALES

OTHER INCOME (SALES DISCOUNT FORFEITED) 1,000.00 OTHER INCOME (SALES D
TOTAL REVENUE 189,748.00 TOTAL REVENUE

AR GROSS 88,200.00 AR GROSS

ADJ AR FOR FORFEITED DISCOUNT 1,000.00 ALLOWANCE
89,200.00 AR NET

CASH 39,200.00 1/5

ACCOUNTS RECEIVABLE 39,200.00

CASH 50,000.00 1/9

ACCOUNTS RECEIVABLE 49,000.00
 ALLOWANCE METHOD

ACCOUNTS RECEIVABLE 102,600.00

SALES 100,548.00
ALLOWANCE FOR SALES DISCOUNT 2,052.00

ACCOUNTS RECEIVABLE 50,000.00

SALES 49,000.00
ALLOWANCE FOR SALES DISCOUNT 1,000.00

CASH 100,548.00
ALLOWANCE FOR SALES DISCOUNT 2,052.00
ACCOUNTS RECEIVABLE 102,600.00

ACCOUNTS RECEIVABLE 40,000.00

ALLOWANCE FOR SALES DISCOUNT 800.00
SALES 39,200.00
EXPIRED DISCOUNT FOR MEN'S WORLD 12/20
ALLOWANCE FOR SALES DISCOUNT 1,000.00
SALES DISCOUNT LOST/FORFEITED 1,000.00

NET SALES 188,748.00

OTHER INCOME (SALES DISCOUNT FORFEITED) 1,000.00
TOTAL REVENUE 189,748.00

AR GROSS 90,000.00
ALLOWANCE - 800.00
89,200.00

CASH 39,200.00
ALLOWANCE FOR SALES DISCOUNT 800.00
ACCOUNTS RECEIVABLE 40,000.00

CASH 50,000.00
ACCOUNTS RECEIVABLE 49,000.00
CASH IN BANK 4,998,000.00
SERVICE CHARGE 116,000.00
ACOUNTS RECEIVABLE-CITY 294,000.00
ACOUNTS RECEIVABLE-METROBANK 392,000.00
SALES 5,800,000.00

CASH IN BANK-BDO 1,800,000.00

ACCOUNTS RECEIVABLE-CITI 2,500,000.00
ACCOUNTS RECEIVABLE-METRO 1,500,000.00
SALES 5,800,000.00

SERVICE CHARGE 36,000.00

CASH IN BANK-BDO 36,000.00

CASH IN BANK-BDO 3,234,000.00 NET AMOUNT

SERVICE CHARGE 66,000.00
ACCOUNTS RECEIVABLE-CITI 2,200,000.00 GROSS AMOUNT
ACCOUNTS RECEIVABLE-METRO 1,100,000.00 GROSS AMOUNT

SERVICE CHARGE 14,000.00

ACCOUNTS RECEIVABLE-CITI 6,000.00
ACCOUNTS RECEIVABLE-METRO 8,000.00

GROSS SALES SERVICE CHARGE ATNET RECEIVABLEAMOUNT COLLECTED

CITIBAN 2,500,000.00 50,000.00 2,450,000.00 2,156,000.00
MTERO 1,500,000.00 30,000.00 1,470,000.00 1,078,000.00
BDO 1,800,000.00 36,000.00 1,764,000.00 1,764,000.00
RECEIVABLE RECOGNIZED
294,000.00 44,000.00 6,000.00
392,000.00 22,000.00 8,000.00
- 66,000.00
JULY 14 ALLOWANCE FOR BAD DEBTS 10,000.00
ACCOUNTS RECEIVABLE 10,000.00

JULY 31 NOTES RECEIVABLE 12,000.00

SALES 12,000.00

AUG 15 CASH 20,000.00

NOTES RECEIVABLE 15,000.00
SALES 35,000.00

NOV 1 CASH IN BANK 19,200.00

SERVICE CHARGE 800.00
SALES 20,000.00

NOV 4 ACCOUNTS RECCEIVABLE 12,300.00

NOTES RECEIVABLE 12,000.00
INTEREST INCOME 300.00

NOV 5 ACCOUNTS RECEIVABLE 8,550.00

SERVICE CHARGE 450.00
SALES 9,000.00

NOV 9 CASH IN BANK 8,550.00

ACCOUNTS RECEIVABLE 8,550.00

NOV 15 ACCOUNTS RECEIVABLE 10,000.00

ALLOWANCE FOR BAD DEBTS 10,000.00

CASH 10,000.00
ACCOUNTS RECEIVABLE 10,000.00

DEC 13 CASH 15,600.00

NOTE RECEIVABLE 15,000.00
INTEREST INCOME 600.00
 ACCOUNTS REC 10M
NON-COLLECTION 1%

BAD DEBTS EXPENSE 100,000.00

ALLOWANCE FOR BAD DEBTS 100,000.00

ALLOWANCE FOR BAD DEBTS 10,000.00

ACCOUNTS RECEIVABLE 10,000.00
Write-off

ACCOUNTS RECEIVABLE 10,000.00

ALLOWANCE FOR BAD DEBTS 10,000.00
Recovery

CASH 10,000.00
ACCOUNTS RECEIVABLE 10,000.00
Collection

Note is dishonored it becomes a regular receivable.

NOV 5/9 AAR 9000

SALES 9000

CIB 8550
SC 450
AR 9000

CASH 10,000
ALLOWANCE 10,000.00

*BAD DEBTS = DOUBTFUL ACCOUNTS

FACE VALUE 4,500,000.00 NON-INTEREST BEARING
TERM 3 YRS
EIR=MARKET RATE 8%
PV 0.7938
DATE INTEREST INCOME CARRYING VALUE OF NOTE
1/1/2019 3,572,100.00
12/31/2019 285,768.00 3,857,868.00
12/31/2020 308,629.44 4,166,497.44
12/31/2021 333,502.56 4,500,000.00

REFER TO M34-M35

FACE VALUE 400,000.00 NON-INTEREST BEARING

TERM 3 YRS
EIR=MARKET RATE=YIELD 10%
PV 0.7500
DATE INTEREST INCOME CARRYING VALUE OF NOTE
1/1/2020 300,000.00
12/31/2020 30,000.00 330,000.00
12/31/2021 33,000.00 363,000.00
12/31/2022 37,000.00 400,000.00
FACE VALUE 4,500,000.00 NON-INTEREST BEARING
TERM 3 YRS
EIR 8%

PAYMENT PV PRESENT VALUE

12/31/2020 1,500,000.00 0.9259 1,388,850.00
12/31/2021 1,500,000.00 0.8573 1,285,950.00
12/31/2022 1,500,000.00 0.7938 1,190,700.00
2.5770 3,865,650.00

OR
1,500,000.00 2.5571 3,835,650.00

REFER TO M38-39
EQUAL ANNUAL PAYMENT INT INCOME PRINCIPAL REPAYMENT
1/7/2020
1/7/2021

1/7/2022

1/7/2023
1/7/2024

-
-
-

6.00 -

6.00 -
-
 DATE EQUAL ANNUAL PAYMENT INTEREST INCOME
1/1/2020 8%
12/31/2020 1,500,000.00 309,252.00
12/31/2021 1,500,000.00 213,992.16
12/31/2022 1,500,000.00 111,105.84

a.
2020 309,252.00
2021 213,992.16

c.
2020-current 1,286,007.84
2020-non-current 1,388,894.16
CURRENT
NOTE RECEIVABLE GROSS 1,500,000.00
UNEARNED INT/ DISCT - 213,992.16
1,286,007.84
CV
PRINCIPAL REPAYMENT CARRYING VALUE OF NOTE
3,865,650.00 3,865,650.00
1,190,748.00 2,674,902.00 2,674,902.00 CV+II-REPAYMENT
1,286,007.84 1,388,894.16 1,388,894.16
1,388,894.16 0.00

NON-CURRENT
1,500,000.00
- 111,105.84
1,388,894.16

NET AMOUNT
JAN 1, 2020 NOTE RECEIVABLE 3,865,650.00
LAND 2,800,000.00
GAIN ON SALE 1,065,650.00

SELLING PRICE (PV OF NOTE) 3,865,650.00

CV 2,800,000.00
1,065,650.00

FACE VALUE OF THE NOTE 4,500,000.00

PV OF THE NOTE - 3,865,650.00
DISCOUNT 634,350.00

DEC 31, 2020 CASH 1,500,000.00

NOTES RECEIVABLE 1,190,748.00
INTEREST INCOME 309,252.00

DEC 31, 2021 CASH 1,500,000.00

NOTES RECEIVABLE 1,286,007.84
INTEREST INCOME 213,992.16

DEC 31, 2021 CASH 1,500,000.00

NOTES RECEIVABLE 1,388,894.16
INTEREST INCOME 111,105.84
GROSS AMOUNT (DISCOUNT IS RECOGNIZED)
JAN 1, 2020 NOTE RECEIVABLE 4,500,000.00
LAND 2,800,000.00
GAIN ON SALE 1,065,650.00
DISCOUNT ON NP 634,350.00

SELLING PRICE (PV OF NOTE 3,865,650.00

CV 2,800,000.00
1,065,650.00

FACE VALUE OF THE NOTE 4,500,000.00

PV OF THE NOTE - 3,865,650.00
DISCOUNT 634,350.00

DEC 31, 2020 CASH 1,500,000.00

DISCOUNT ON NP 309,252.00
NOTES RECEIVABLE 1,500,000.00
INTEREST INCOME 309,252.00
DEC 31, 2021 CASH 1,500,000.00
DISCOUNT ON NP 213,992.16
NOTES RECEIVABLE 1,286,007.84
INTEREST INCOME 213,992.16

DEC 31, 2021 CASH 1,500,000.00

DISCOUNT ON NP 111,105.84
NOTES RECEIVABLE 1,500,000.00
INTEREST INCOME 111,105.84
FACE VALUE 3,000,000.00 INTEREST BEARING NOTE PAYMENT DATES
TERM 3 YRS 1/10/2019
EIR 6% 9/30/2020
NR 6% 9/30/2021
PAYMENT PV PRESENT VALUE 9/30/2022

INTEREST INCOME
OCT 1,2019-SEPT 30, 2020
2019

OCT 1,2019-SEPT 30, 2020

OCT 1,2020-SEPT 30, 2021
2020

OCT 1,2020-SEPT 30, 2021

OCT 1,2021-SEPT 30, 2022
2021

OCT 1,2021-SEPT 30, 2022

2022

NOTE
INTEREST INCOME

1/10/2019

12/31/2019

9/30/2020

12/31/2020

9/30/2021
12/31/2021

9/30/2022
 TOTAL PAYMENT INTEREST INCOME PRINCIPAL REPAYMENT CARRYING VALUE OF NOTE
3,000,000.00
1,180,000.00 180,000.00 1,000,000.00 2,000,000.00
1,120,000.00 120,000.00 1,000,000.00 1,000,000.00
1,060,000.00 60,000.00 1,000,000.00 -

180,000.00 45,000.00 3MONTHS PAID

45,000.00

180,000.00 135,000.00 9 MONTHS PAID

120,000.00 30,000.00 3 MONTHS EARNED BUT NOT YET RECEIVED
165,000.00

120,000.00 90,000.00 9 MONTHS

60,000.00 15,000.00 3 MONTHS
105,000.00

60,000.00 45,000.00 9 MONTHS

45,000.00

CURRENT NON-CURRENT
1,000,000.00 1,000,000.00
30,000.00 0
1,030,000.00 1,000,000.00

NOTE RECEIVABLE 3,000,000.00

SALES 3,000,000.00

INTEREST RECEIVABLE 45,000.00

INTEREST INCOME 45,000.00

CASH 1,180,000.00
NOTE RECEIVABLE 1,000,000.00
INTEREST RECEIVABLE 45,000.00
INTEREST INCOME 135,000.00

INTEREST RECEIVABLE 30,000.00

INTEREST INCOME 30,000.00

CASH 1,120,000.00
 NOTE RECEIVABLE 1,000,000.00
INTEREST RECEIVABLE 30,000.00
INTEREST INCOME 90,000.00

INTEREST RECEIVABLE 15,000.00

INTEREST INCOME 15,000.00

CASH 1,060,000.00
NOTE RECEIVABLE 1,000,000.00
INTEREST RECEIVABLE 15,000.00
INTEREST INCOME 45,000.00
YET RECEIVED
FACE VALUE 7,500,000.00 INTEREST BEARING
TERM 3 YRS
EIR 10%
NR 5%
PRINCIPAL PAYMENTS INTEREST PAYMENTS TOTAL PV
12/31/2020 2,500,000.00 375,000.00 2,875,000.00 0.9091
12/31/2021 2,500,000.00 250,000.00 2,750,000.00 0.8264
12/31/2022 2,500,000.00 125,000.00 2,625,000.00 0.7513
 INTEREST
REST BEARING DATE TOTAL PAYMENT INTEREST RECEIVED (5%)
1/1/2020
12/31/2020 2,875,000.00 375,000.00
12/31/2021 2,750,000.00 250,000.00
PRESENT VALUE 12/31/2022 2,625,000.00 125,000.00
2,613,662.50
2,272,600.00
1,972,162.50 1/1/2020 NOTE RECEIVABLE 7,500,000.00
6,858,425.00 LAND
GAIN ON SALE OF LAND
DISCOUNT ON NOTE

SP (PV OF FP) 6,858,425.00

CV 6,000,000.00
GAIN 858,425.00

FACE VALUE OF NOTE 7,500,000.00

PV 6,858,425.00
641,575.00

12/31/2020 CASH 2,875,000.00

DISCOUNTON NOTE 310,843
INTEREST INCOME
NOTE RECEIVABLE

12/31/2021 CASH 2,750,000.00

DISCOUNTON NOTE 216,927
INTEREST INCOME
NOTE RECEIVABLE

12/31/2022 CASH 2,625,000.00

DISCOUNTON NOTE 113,806
INTEREST INCOME
NOTE RECEIVABLE
INTEREST
INTEREST INCOME (10%) DISCOUNT AMORTIZATION PRINCIPAL REPAYMENT

685,842.50 310,843 2,500,000.00

466,926.75 216,927 2,500,000.00
238,805.76 113,806 2,500,000.00

6,000,000.00
858,425.00
641,575.00

685,842.50
2,500,000.00

466,926.75
2,500,000.00

238,805.76
2,500,000.00
CARRYING VALUE OF NOTE
6,858,425.00
4,669,267.50
2,386,194.25
0.00
FACE VALUE 7,500,000.00 DATE TOTAL PAYMENT
TERM 3 YRS 1/1/2020
EIR 10% 12/31/2020 3,550,000.00
NR 5% 12/31/2021 3,200,000.00
PAYMENT PV PRESENT VALUE 12/31/2022 2,850,000.00
12/31/2020 3,550,000.00 0.9091 3,227,305.00
12/31/2021 3,200,000.00 0.8264 2,644,480.00
12/31/2022 2,850,000.00 0.7513 2,141,205.00 NOTE RECEIVABLE
8,012,990.00 PREMIUM ON NP
LAND
GAIN ON SALE OF LAND

SP
CV

FACE VALUE OF NOTE

PV

12/31/2020 CASH
PREMIUM ON NP
INTEREST INCOME
NOTE RECEIVABLE

12/31/2021 CASH
PREMIUM ON NP
INTEREST INCOME
NOTE RECEIVABLE

12/31/2022 CASH
PREMIUM ON NP
INTEREST INCOME
NOTE RECEIVABLE
 INTEREST RECEIVED INTEREST INCOME PREMIUM AMORTIZATION PRINCIPAL REPAYMENT

1,050,000.00 801,299.00 (248,701) 2,500,000.00

700,000.00 526,428.90 (173,571) 2,500,000.00
350,000.00 259,071.79 (90,928) 2,500,000.00

7,500,000.00
512,990.00
6,000,000.00
SALE OF LAND 2,012,990.00

8,012,990.00
6,000,000.00
2,012,990.00

7,500,000.00
8,012,990.00
- 512,990.00

3,550,000.00
248,701
801,299.00
2,500,000.00

3,200,000.00
173,571
526,428.90
2,500,000.00

2,850,000.00
90,928
259,071.79
2,500,000.00
CARRYING VALUE OF NOTE
8,012,990.00
5,264,289.00
2,590,717.90
- 210.31